Page 19 - Obligatory Zakat Made Easy

Definition Definition
Money that is deposited in a savings account whether The Employees Provident Fund (EPF) & the Armed Forces
fixed deposit, current savings, ASB or other forms of Fund Board (LT AT) are savings made by individuals
deposits at a bank or any financial institution. during their period of service and they satisfy all the
required conditions of zakat except for "full ownership",
Zakat Rate which will be fulfilled once the money is withdrawn from
the EPF & LTAT.
2.5% zakat is imposed on the total of savings balance at
Calculation Method
the end of the year equivalent or more than the nisab.
Calculation Method

Table: Account 1
Calculations of EPF & LT AT Zakat
Date Withdrawal Deposit/ Balance Amount of EPF/LTAT withdrawn x 2.5%
(RM) Dividend (RM) (RM) = RMl00,000.00 x 2.5%
01/01/xxxx - 20,000.00 20,000.00 = RM2,500.00
23/04/xxxx 2,000.00 - 18,000.00
30/05/xxxx - 5,000.00 23,000.00 Contributors who retain their savings in the EPF although
10/07/xxxx 3,000.00 - 20,000.00 they are permitted to make withdrawals upon reaching the
age of 50 or 55 will be charged zakat on such retained
12/08/xxxx 2,500.00 - 17,500.00 savings. Savings maintained in the EPF /LT AT are
11/11/xxxx - 2,000.00 19,500.00 considered as savings zakat for the following years.
31/12/xxxx - 1,000.00 20,500.00
Balance at the end of the term is RM20,500. 00.
It exceeds the nisab and completes a year.

Calculation Example
Savings closing balance of the year x 2.5%
Account 1 closing balance (table example) : RM 20,500.00
Account 2 closing balance : RM 2,500.00
Total savings : RM 23,000.00
Zakat (RM23,000.00 x 2.5%) RM 575.00

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